EUGENE, Ore. — Oregon Community Credit Union plans to expand its indirect auto lending relationships into Texas and Arizona as it seeks to increase loan volume and diversify the geographic mix supporting its auto loan securitization program, according to a credit union announcement.
The $3.7-billion OCCU said the planned expansion, along with growth in California, would extend its lending relationships beyond its traditional Pacific Northwest markets. The strategy is intended to help the credit union access capital markets consistently and support investments in member products, technology and services, according to OCCU.
Auto Finance News also reported on the Texas and Arizona expansion Oct. 2, citing continued investor demand for OCCU’s auto asset-backed securities.
The 300,000-member credit union completed its fourth auto loan securitization Aug. 28, issuing more than $307 million in securities backed by more than $326 million in auto loans.
Marketshare by State
Oregon accounted for 44.8% of the underlying loan pool, followed by Washington at 33.2%, California at 11.3% and Idaho at 6.9%.
Securitization involves pooling loans and selling interests in them to investors. OCCU said it continues servicing the loans after the transactions close, providing additional funding for future lending while retaining member relationships.
The Sept. 1 announcement did not specify a launch date for either new market.
